Prologis Inc , one of the world's largest owners of warehouse and distribution centers, reported results that beat Wall Street expectations, in part because of greater-than-expected leasing, and raised its forecast for the rest of the year.

The company reported funds from operations (FFO), a performance measure for real estate investment trusts, of $207.2 million, or 45 cents a share, compared with $104.1 million or 48 cents per share a year earlier.

It was the first full quarter in which Prologis has operated as one company since AMB bought ProLogis. The results from 2010 reflect ProLogis' activities before the deal.

The company owns or operates 600 million square feet of properties and development projects in the Americas, Europe and Asia. Its business depends upon global trade and the needs of its customers, who include air shippers, and consumer products makers such as Amazon.com Inc , Home Depot Inc and other manufacturers.

It usually buys or builds warehouses and sells them into funds it operates, retaining about a 20 percent or more interest.

Stripping out gains from property sales of 3 cents per share and acquisition-related charges of 2 cents a share, the company reported core FFO of $205.9 million, or 44 cents per share, compared with 69.9 million, or 33 cents per share.

Analysts on average expected 39 cents, according to Thomson Reuters I/B/E/S.

FFO removes the profit-reducing effects of depreciation.

The company said it is focused on reducing debt and has increased the amount of warehouse and distribution centers it plans to sell and reduced the amount of development and acquisitions it expects to complete by the end of the year.

Its new sales target range for the second half of 2011 is now $1.8 billion to $2.0 billion, up from $1.2 billion to $1.5 billion. Its development target for the second half of the year is a range of $325 million to $375 million and the acquisitions target is a range of $225 million to $275 million.

At the end of the quarter, the company's operating portfolio was 91 percent occupied, up from 90.7 percent at the end of the second quarter. The company leased 33.4 million square feet, or 3.1 million square meters, during the third quarter.

But rents still remain soft. For properties the company has owned and operated for more than a year, new leases were 8.6 lower than those that expired.

Prologis raised its forecast for the second-half of 2011, resulting in a fourth-quarter core FFO outlook of 39 to 41 cents per share. Analysts on average see 40 cents per share, according to Thomson Reuters I/B/E/S. (Reuters)